Hector McFarlane says he gave the 44-year-old former Blackpool manager the cash while the star's wife Denise – who died last year – was seriously ill.

The cash was given as a short-term loan, Mr McFarlane said.

But the 61-year-old says he has been forced to take legal action after Mr Hendry failed to carry out his request to take legal steps to secure the money against his West Beach home in Lytham.

A Request For Judgement was issued by solicitors acting on behalf of Mr McFarlane – who is suing for £85,000 plus £5,000 legal fees – at Blackburn County Court.

The action is taken when the party or parties being sued do not respond to a court summons.

Mr McFarlane, a pallbearer at Mrs Hendry's funeral, said he and his wife Williamina were devastated to have fallen out with his friend.

He said: "We've been left with no choice. We've never actually asked Colin for our money back. We wanted him to put a charge on his house to secure the loan, but it never happened.

"We never had any option but to take legal action because Colin stopped all contact – he wouldn't talk to us.

"They were our friends and Denise was very special to us.

"We feel very sad about the situation, but we were given false promises and feel betrayed.

"We don't think we are going to get our money back. Legally, we could apply for bailiffs to go into his house and take property, but we don't want to do that.

"I'm 61 and my wife is 59, we are never going to make that money again."

Mr McFarlane said Mr Hendry drew up a deed in October last year, with his solicitors, which promised to pay £86,610 plus interest by January 29, or once he sold a holiday home in France. But no money was received.

It had been reported in the national press Mr Hendry, who has four children, has several other creditors to pay.

Mr Hendry's wife Denise died in July after an operation to repair damage from botched cosmetic surgery in 2002.

Mr Hendry was unavailable for comment.